With many bureaucratic systems AI seems to be used to build a better horse when cars and tractors already exist. Everything was built for a paper based world and was never designed with data or automation in mind.
Once the humans are removed, there is far less motivated reasoning to keep that process alive if it’s just robots burning tokens passing paper back and forth.
I will likely somehow be proven wrong, but it is one of the main uses I am optimistic for in the AI space.